Tonga: Economy

Estimated growth exceeded the forecast for Tonga for Fiscal Year 2016, driven by recovery in agriculture, the implementation of major projects such as the renovation of the International Dateline Hotel and the construction of the government office complex St. George’s Palace, remittance receipts unexpectedly up by 24.8%, and private sector lending up by 14.5%. Tourism was strong as international arrivals increased by almost 15.0%. The growth projection for FY2017 is revised down slightly to account for a base effect from surprisingly good growth in FY2016, but the economy is expected to enjoy continued support from vibrant construction and tourism, as well as increased commerce related to preparations for the South Pacific Games. Read more from Asian Development Outlook 2016 Update